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Release Date :
Reference Number :
2022-398
 
 
 

Year-on-Year

The Producer Price Index (PPI) for manufacturing posted a slower annual rate of 7.3 percent in August 2022 compared with the annual increment of 8.0 percent last July 2022. In August 2021, the PPI dropped with an annual rate of -0.4 percent.  (Table A and 1)

The increase in the PPI in August 2022 can be attributed to the annual increments in the indices of 20 industry divisions led by manufacture of coke and refined petroleum products, which registered an annual growth of 16.8 percent.

On the contrary, the two industry divisions that exhibited decrements were printing and reproduction of recorded media and manufacture of machinery and equipment except electrical with annual growth rates of -1.4 percent and -0.3 percent, respectively.  (Tables A-1 and 1)

 

Month-on-Month

Month-on-month, the PPI for manufacturing posted a downturn in August 2022 with a -0.2 percent growth rate compared with the 0.6 percent increase in July 2022. In August 2021, the PPI recorded a monthly increment of 0.5 percent.  (Table A and 1)

Half of the 22 industry divisions registered negative monthly growth rates in August 2022 led by other manufacturing and repair and installation of machinery and equipment and manufacture of basic metals both recording a monthly decrease of -1.1 percent.

On the other hand, the PPI of seven industry divisions exhibited monthly upturns with manufacture of furniture posting the highest increase of 0.6 percent. Meanwhile, the monthly growth rates of four industry divisions were at 0.0 percent.  (Tables A-2 and 1)

 

 

 

 

 

 

Manufacture of food products

The PPI for the manufacture of food products posted a slower growth with an annual rate of 8.7 percent in August 2022, compared with the previous month’s annual rate of 10.0 percent.

The increment in August 2022 was attributed by the annual increases in the PPI of seven industry groups under the manufacture of food products. Moreover, double-digit upturns were registered in the three industry groups, namely: manufacture of grain mill products, starches and starch products (17.7%), manufacture of prepared animal feeds (14.9%), and processing and preserving of fish, crustaceans and mollusks (12.8%)(Tables 1 and 2)

On a month-on-month basis, the PPI for the manufacture of food products exhibited downward trend with a monthly growth rate of -0.5 percent in August 2022. In July 2022, it increased by 0.8 percent. Four of the eight industry groups contributed to the decrease of the PPI for the manufacture of food products led by processing and preserving of fruits and vegetables posting a monthly rate of -3.8 percent.  (Tables 1 and 2)

 

 

 

 

 

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

 

 


 
 
Technical Notes
 
  • Introduction
Starting with the January 2021 reference period, the Producer Price Index (PPI) for Manufacturing uses the 2018 as base year, from the previously used 2000 base period. The PPI for Manufacturing measures the changes in the producer price of key commodities produced by the Manufacturing sector. One of its uses is as a deflator to derive the Volume of Production Index (VoPI) and Volume of Net Sales Index (VoNSI).
 
The PPI for Manufacturing is generated from the results of the Producer Price Survey (PPS) which is conducted nationwide. The survey gathers monthly producer prices of selected products included in the market basket of PPI from sample establishments.
 
  • Method of Index Computation
The PPI utilizes the chained Paasche-type method of index computation where the base year is normalized. The weights are computed from the value of production from the Census of Philippine Business and Industry (CPBI) or Annual Survey of Philippine Business and Industry (ASPBI), whichever is the more recent. The weights are updated as soon as new results of the CPBI or ASPBI are available and these are applied at the beginning of each survey year.
 
For the 2022 PPI, the base year used is 2018 and the weights of the industry divisions and industry groups were computed based on the results of the 2019 ASPBI for Manufacturing establishments with total employment of 20 and over.
 
The computation of PPI adopts the following formula:
 
Formula 1
Formula 2
 
 
 
Formula 3
 
Formula 3

Note: A link factor has been used to adjust weight effects to measure the correct price change.

 

 

  • Computation of Growth Rates

Year-on-year growth rates are computed by dividing the current month’s index by the index of the same month of the previous year less 1.

Month-on-month growth rates are computed by dividing the current month’s index by the previous month’s index less 1.

 
  • Imputation and Revision

Imputation is done for sample establishments that are in operation during the reference period but with no received response during the release date. Results are revised accordingly when the actual data are received, and these revisions are reflected in the next release.

 

  • Industry Coverage

Starting with the January 2013 reference month, PPI utilizes the 2009 Philippine Standard Industrial Classification (PSIC) to classify sectors and industries. Selected industry groups of the 2009 PSIC were grouped to form the 22 industry divisions of the 2021 PPS. These are presented in the table below.

2009 PSIC CODE

INDUSTRY DESCRIPTION

C10

Manufacture of food products *

C11

Manufacture of beverages

C12

Manufacture of tobacco products

C13

Manufacture of Textiles

C14

Manufacture of wearing apparel

C15

Manufacture of leather and related products, including footwear

C16

Manufacture of wood, bamboo, cane, rattan articles, and related products products*

C17

Manufacture of paper and paper products

C18

Printing and reproduction of recorded media

C19

Manufacture of coke and refined petroleum products

C20

Manufacture of chemical and chemical products*

C21

Manufacture of basic pharmaceutical products and pharmaceutical preparations

C22

Manufacture of rubber and plastic products*

C23

Manufacture of other non-metallic mineral products*

C24

Manufacture of basic metals*

C25

Manufacture of fabricated metal products, except machinery and equipment*

C26

Manufacture of computer, electronic, and optical products*

C27

Manufacture of electrical equipment*

C28

Manufacture of machinery and equipment except electrical*

C29, C30

Manufacture of transport equipment*

C31 Manufacture of furniture
C32, C33 Other manufacturing

* Industry divisions categorized further into industry groups

 

 

See more at the Producer Price Survey (PPS) main page.

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